Cottage Industries

A cottage industry can be 5 people making something, so it is easier to develop than large-scale industries. They are essential even in cities. Cottage industries are smaller than small-scale industries

Handmaking is a part of cottage industries. There is great demand for handmade items produced even as export goods

Such industries heavily depend on the availability of raw materials, climatic conditions and traditional skills. The recent floods in Sindh have displaced many people and so cottage industries have been affected

The importance of cottage industries;

They are labour-intensive and thus can provide employment opportunities or even self-employment. Women can easily work from home as some traditional households in rural areas still discourage women from working outside the house.

They help meet the local demand for goods, and they also provide 30% of export receipts. It helps reduce the disparity in income

They do not require a lot of investment as they do not need any imported raw materials or equipment. Waste from large industries can be used by them to create by-products, and other local raw materials can also be used effectively.

What the government does for cottage industries:

They set up small industrial corporations in all provinces as well as technical service centres and handicraft development centres.

Industrial estates are established. Facilities such as loans on easy instalments and counselling are provided

Problems faced by the cottage industry:

No extra capital for future investment or expansion.

The production cost is higher. The wholesaler or the market takes the profit, while the person making the craft isn't getting the profits.

Electricity is a problem and the labourers are poor and uneducated

Notes by Miss Maliha Ghazanfar (2022), compiled by Rayyan Jamil Khan of Class X-T Karachi Grammar School - College Section